Missoula Financial Expert Explains Associated Press Hacking That Caused Stocks to Tumble [AUDIO]
Hackers were able to break into the Associated Press Twitter account and place a false report on an attack at the White House in which President Obama was allegedly injured. The report caused the Dow Jones Industrial Average to drop suddenly.
Bob Seisenschwartz with Missoula's S. G. Long and Company watched the drop with great interest as it was happening.
"Understand, with the markets, anything, especially involving the White House, is going to send the market scurrying, without asking questions first. Rather than wait around to find out if the story was true or not, it simply reacted," Seidenschwartz said.
"One good example is what happened on 9-11, when the markets dropped so quickly that trading was actually stopped. Now, there are governers in place that are supposed to stop a sudden market slide, but that doesn't happen when there's a major news story. It's just a reflection of the world we live in today, with 24/7 instantaneous reactions to world events," Seidenschwartz added.
Seidenschwartz said the markets made a full recovery after the hoax was discovered.